LIC Large & Mid Cap Fund with Long Term Capital Appreciation (LTCA), which primarily invests in large and mid-cap stocks, has achieved returns of over 14% CAGR since its inception. The fund was introduced on February 25, 2015, by the fund house LIC Mutual Fund. As of July 29, 2022, Regular Growth Fund had outperformed its benchmark Nifty 50-TRI Index, which was 10.88%, to a high of 12.49%. Since inception of CAGR (February 2015). On the other hand, the direct-growth option has outperformed its tiered benchmark index, delivering an excellent CAGR of 14.03 per cent since its inception.
As on July 29, 2022, the Compounded Annual Growth Return (CAGR) performance of LIC Large & Mid Cap Fund is 11.44 per cent, 18.83 per cent in different time periods of 5 year, 3 year and one year respectively. and 9.16 percent. Whereas the CAGR of Direct (G) option for different tenures of 5 years, 3 years and one year is 13.18%, 20.68% and 10.85% respectively.
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As per data from Value Research, the fund’s regular option now has a 4-star rating, with an expense ratio of 2.37% (as on 31-July-2022) and direct option expense ratio of 0.85%. With respect to the existing 26 schemes in Large & Mid Cap segment, LIC Large & Mid Cap Fund CAGR compares strongly and gives above average returns. LIC Large and Mid Cap Fund AUM as on July 31, 2022 was Rs 1,831.26 crores while the total Large and Mid Cap Fund category had a Net AUM of Rs 1.17 lakh crores.
The fund’s direct option has given a past return of 22.17% in the last three years as on the date of Value Research, which means a SIP What was started in this fund three years ago would have grown to 10,000 now 5.12 lakhs. Since the Direct (G) option has given a trailing return of 14.36% over the last five years, a SIP of 10,000 invested in this fund five years ago would have grown around Rs. 9.52 lakh today. The direct (G) option of the fund has produced a trailing return of 14.82% over the last seven years, which is around Rs 15.64 lakh on SIP of 10,000.
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For LIC Large & Mid Cap Fund, the minimum investment under the lump sum option is INR 5,000, and the SIP contribution starts from INR 1000 per month. The financial, technology, services, chemical and energy industries are all represented in the fund’s sector allocation. ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Tata Consultancy Services Ltd. and Reliance Industries Ltd. are the top 5 holdings of the fund. As of July 2022, the top 5 sectors for LIC Large & Mid Cap Fund are Banking (15.62%), IT & Software (9.67%), Chemicals & Petrochemicals (8.81%), Consumer Durables (8.69%), and Industrial Products. (7.38 percent). Other industries include retail, biotechnology, pharmaceuticals, gas, finance, leisure, capital markets and petroleum products. 96.42% of the fund’s assets are allocated to equities, of which 39.88% are large cap stocks, 38.73% are mid cap stocks, and 17.81% are small cap stocks.
LIC MF said on its website, “The investment objective of the fund is to generate “long-term capital appreciation by making substantial investments in a portfolio of equities and equity-linked instruments of large-cap and mid-cap companies.” The fund is suitable for more than three years. For investors seeking wealth growth with a longer investment horizon as equity funds are effective for creating long-term wealth. Investors with relatively high risk tolerance who prefer to invest in both large-cap and mid-cap Shares can think of contributing to this fund.
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